Exercise
Match each term to its description.
A. CESA
B. 529 college savings plan
C. Prepaid tuition plan
D. UGMA/UTMA
E. Education savings bond
1. _____ This instrument allows earnings to grow tax-free and can be used to pay for all educational expenses for primary through graduate school education.
2. _____ Setting up this type of instrument allows the investor to avoid inflation risk by purchasing credits to pay for education expenses in today’s dollars.
3. _____ These instruments allow an adult to set up an account for the benefit of a minor, and although the account is not man